Which of the Following Is an Audit Procedure That Auditors

question 6

Multiple Choice

Which of the following is an audit procedure that auditors most likely would perform concerning litigation, claims, and assessments?

• A)Request the client's attorney to evaluate whether the client's pending litigation claims, and assessments indicate a going concern problem.
• B)Examine the legal documents in the client's attorney's possession concerning litigation, claims, and assessments to which the attorney has devoted substantive attention.
• C)Discuss with management its policies and procedures adopted for evaluating and accounting for litigation, claims, and assessments.
• D)Confirm directly with the client's attorney that all litigation, claims, and assessments have been recorded or disclosed in the financial statements.

---

Definitions:

Subgroups

Divisions or smaller groups formed within a larger group, often based on specific characteristics or criteria.

Style Of Questions

Refers to the manner in which questions are designed, including format, language, and structure, to gather specific types of responses.

Homogeneity

The degree of “sameness” in a population. Generally, the greater the homogeneity, the smaller the sample size required.

Nature And Purpose

The fundamental qualities and the intended goals or reasons behind a study or phenomenon.